Punjab ATUF Interest Subsidy for Textiles

Clause 12.9 of the Industrial and Business Development Policy 2022 of Punjab provides a state-level interest subsidy that operates alongside the Centre's Amended Technology Upgradation Fund (ATUF) scheme. Under this provision, MSMEs that establish new capacity, expand, or diversify in apparel and made-ups and technical textiles are eligible for a 5% interest subsidy for 5 years starting from the date of commercial production, capped at ₹10 lakh per year.

The subsidy is additive to ATUF and does not substitute it. Consequently, a unit that finances modern looms or processing machinery can achieve a considerably lower effective cost of debt during the period when the new line is still building its order book.

1. Approve the term loan for the apparel, made-ups or technical textiles project and register it under the central ATUF scheme. 2. Secure approval of the project as an eligible MSME under the Industrial and Business Development Policy 2022. 3. Begin commercial production and note the date, since the 5-year window is counted from it. 4. Submit annual interest subsidy claims, along with bank interest certificates, on the Invest Punjab Business First portal. 5. Each year, reimbursement is disbursed subject to the ₹10 lakh ceiling.

The department carries out a non-competitive assessment. It checks that ATUF registration is in place, confirms the textile segment and the date commercial production began, and verifies the interest actually paid. Once these are established, it disburses 5%, subject to the annual ceiling.